Analysis of transactions and tips for trading EUR/USD
Further decline became limited because the test of 1.0814 occurred during the sharp downward move of the MACD line from zero.
Because of the empty macroeconomic calendar, pressure on euro persisted on Monday, all within the framework of the downward trend observed in the past few weeks of January. Buyers only stepped in after the update of another monthly low, resulting in a slight stabilization of the situation.
Now, everything depends on the upcoming data, such as the change in the GDP of Germany and the whole eurozone. Disappointing figures will prolong the pressure, as will weak figures on consumer confidence for January. The latter may help push euro below the monthly low. Dovish speech from ECB Governing Council member Joachim Nagel will also contribute to the decline.
For long positions:
Buy when euro hits 1.0829 (green line on the chart) and take profit at the price of 1.0860. Growth will occur in the case of very favorable GDP statistics for the Eurozone.
When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0811, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0829 and 1.0860.
For short positions:
Sell when euro reaches 1.0811 (red line on the chart) and take profit at the price of 1.0785. Pressure on the pair will increase amid very weak macroeconomic statistics.
When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0829, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0811 and 1.0785.
What's on the chart:
Thin green line - entry price at which you can buy EUR/USD
Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line - entry price at which you can sell EUR/USD
Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.